New Home Sales Dipped in May
Washington DC, June 24, 2016—According to Thursday's report from the U.S. Commerce Department, U.S. New-Home sales declined 6% to 551,000 in May after a surge in April, but the pace was still the second best for a month since the recession ended.
April's rate was cut to 586,000 which was 12.3% higher than March. Even with this revision, April's rate was the highest since February 2008. On a year over year comparison, new-home sales are up 6.4% this year versus 2015.
Job growth and ultra-low mortgage rates have helped drive the increase, though the data can be volatile from month to month and across regions.
Much of this month's dip can be attributed to declines in the pricier Northeast and Western regions of the country. Northeast sales slumped 33% from April to May while the West suffered a 15.6% percent decline. Sales were flat in the South but increased 12.9% in the more affordable Midwest.
Sales of existing homes reached a seasonally adjusted annual rate of 5.53 million, the best since early 2007.